Online tool brings new dimensions to fundraising

Online fundraising tools are changing the way money is donated to charities and an innovative New Zealand company is leading the way.

Managing director of FundraiseOnline Nigel Sanderson says he started the organisation’s fundraising website based on a chance meeting about five years ago.

“Someone I was training with was fundraising. I had e-procurement and web-based transaction experience.

“We sat down with a cold beer and came up with the idea [of online fundraising].”

The website enables people to personalise a fundraising page, including photos and a blog. Friends and family can donate by credit card through the site and their donations are highlighted on their page.

Sanderson says the online fundraising model resonates with charities for a number of reasons.

“Charities love us because we’re extremely cheap and a high profile channel to raise money.”

He says FundraiseOnline is also a low-risk option.

There is always “leakage” in a system where charities collect cash, he says.

“Leakage is a nice way of saying people nick stuff.”

The company also enables small, poorly resourced charities to raise money, he says.

At an initial cost of $150 a year, they can have a fundraising initiative up and running online in half a day, says Sanderson.

Nurse and mother of three Mary Carraher chose FundraiseOnline to raise funds for the Child Cancer Foundation by shaving her hair.

“The charity had set it up. You didn’t have to do anything else.

“It was user-friendly and ready to go.”

Carraher did a bit of old-style and new-school fundraising to raise $2600 for child cancer.

“I went to a school fun fair where my head was shaved and we used a bucket to collect donations.”

But the fundraising page she had set up online also helped.

“People said they didn’t have any cash on them and asked for the option of transferring money to my account.”

Carraher was also able to raise money from overseas. She contacted her family and friends in Ireland directing them to her online page.

Sanderson says the international collection of donations also worked for one of their clients, Gulf Harbour School.

“Their overseas students, who might not normally participate in fundraising events, were able to use the site to collect money from friends and family.”

FundraiseOnline, a private company, takes a fee of five per cent on all donations going through its website. It adds credit card fees at cost, bringing the total cost to the charity to seven per cent.

Carraher was surprised to hear FundraiseOnline takes five per cent of the amount raised.

“I would be very disappointed if a percentage of money given to me went elsewhere.”

But Sanderson contrasts the fee with other fundraising channels.

“We’ve been made aware that some of the telecommunication companies involved in mobile phone fundraising charge up to 50 per cent.”

Sanderson says they want to break even on the charity work and make their money through their work with companies and corporate social responsibility.

Sanderson’s company supports up to 300 charities worldwide from a small office of two part time staff in New Plymouth. It has helped New Zealand charities to raise nearly $9 million since it began.